Chinese Owner of British Steel Seeks Compensation From U.K. After State Takeover
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Jingye has started consultation procedures with the British government, seeking recompense after its 1.2 billion pound investment was wiped out. Photo: VCG
Chinese steelmaker Hebei Jingye Group Co. Ltd. has initiated consultation procedures with the U.K. government under a bilateral investment treaty, seeking compensation for losses after the state takeover of British Steel Ltd.
On Thursday, Jingye issued its first public statement since the U.K. government took control of British Steel last year, accusing London of failing to provide reasonable compensation.
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- Chinese steelmaker Hebei Jingye Group seeks compensation from UK government under 1986 bilateral investment treaty after British Steel was nationalized in April 2025.
- Jingye acquired British Steel for £53 million in 2020 and invested over £1.2 billion, while the UK has offered roughly £100 million in compensation.
- The dispute highlights geopolitical risks for Chinese investors as Western governments protect domestic industries under national security mandates.
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Who’s Who
- Hebei Jingye Group Co. Ltd.
- Hebei Jingye Group, a Chinese steelmaker, acquired British Steel in March 2020 for £53 million and invested over £1.2 billion. Following the UK government's state takeover of British Steel in 2025, Jingye initiated consultation under the 1986 China-UK investment treaty, seeking compensation for losses it claims were inadequately addressed.
- British Steel Ltd.
- British Steel Ltd. was acquired by China's Hebei Jingye Group in 2020 for £53 million, with 4.5 million tons annual capacity. It has reported losses since 2021, losing £205 million in 2023. The UK government nationalized it in 2025, offering only £100 million compensation, sparking a dispute under the 1986 China-UK investment treaty.
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What Happened When
- March 2020：
- Hebei Jingye Group Co. Ltd. acquired British Steel for about 53 million pounds.
- 2021：
- British Steel began reporting annual losses.
- 2023：
- British Steel posted an operating loss of 205 million pounds; by year-end, total assets were 788 million pounds against 1.04 billion pounds in liabilities.
- March 27, 2025：
- British Steel announced consultations on closing its two blast furnaces — the last two operating in the U.K.
- Late March 2025：
- U.K. government had allocated 419 million pounds to keep British Steel operating.
- April 2025：
- U.K. government rushed the Steel Industry (Special Measures) Act through parliament in a single day, authorizing a state takeover of British Steel. A U.K. government official stated that fair market value would be paid for assets, but that market value was effectively zero.
- May 2025：
- U.K. government introduced a bill to fully nationalize British Steel, citing national interest.
- By late June 2025：
- U.K. government support for British Steel was expected to exceed 600 million pounds.
- 2025：
- U.K. government took control of British Steel; Jingye accused London of failing to provide reasonable compensation.
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